Seek increases share of Chinese job site Zhaopin
Job seeking website Seek has increased its share in Chinese employment site Zhaopin. The company’s equity interest will increase from 55.5% to between 72.3% and 79%.
The announcement:
SEEK Limited (“SEEK”) today announced it has entered into a share purchase agreement to increase its ownership stake in Zhaopin Limited (“Zhaopin”).
Zhaopin operates a leading online employment marketplace in China and this transaction is part of SEEK’s continued strategy to increase its exposure to leading international businesses. SEEK’s equity interest will increase from 55.5% to between 72.3% and c79% depending on the level of take up from certain shareholders.
Jason Lenga, Managing Director of SEEK International and Director of Zhaopin, said “Zhaopin is a leading player in many of China’s geographic regions and across several key online operating metrics. As China’s urbanisation and internet penetration increases, we expect it will be the world’s largest online employment marketplace.”
When comparing the 2012 financial year to 2011, Zhaopin’s financial performance has been strong, recording revenue growth of 28% and EBITDA growth of 70% (FY12 v FY11).
Zhaopin’s local management team has performed well in achieving these results and leading a highly successful business. SEEK fully support the local team’s ability to lead the way going forward.
Mr Lenga said, “Despite a recent slowdown in China’s economic conditions, Zhaopin’s team has demonstrated a deep understanding of local conditions and their needs. The business will continue to invest appropriately to drive Zhaopin’s growth and focus on leading the company to a potential IPO.”
“This transaction is an important step in expanding SEEK’s exposure in key international markets as well as a compelling growth opportunity for SEEK’s shareholders.”
SEEK’s equity interest in Zhaopin will depend on the take up levels from other shareholders based on SEEK’s offer to acquire additional shares. However, it is expected that SEEK will increase its current interests from 55.5% to 72.3% to c79%. There is a provision that SEEK may acquire further ownership interests in Zhaopin in FY14.
The acquisition will take place via a sell down of shares from Macquarie and other individual shareholders.
Source: Seek
